Before you make your outsourcing decision you must understand the need for what your looking at to outsource

Since Outsourcing is...
 » A proven method of saving money on non-strategic business functions.
 » A way for management to strategically concentrate on "core" lines of business.
 » A method for gaining expertise of specialist vendors and cost benefits of vendor's economics of     scale.
 » A vehicle to re-deploy capital committed to in-house support services to "core" business services.

Client Benefits...

By outsourcing, you can:
 » Reduce overheads, free up resources.
 »  Avoid capital expenditure and Reduce operating costs.
 »  Improve efficiency and Save on manpower and training costs.
 »  Offload non-core functions.
 »  Get access to specialized skills.
 »  Establish long-term, strategic relationships with world-class service providers to gain a      competitive edge.
 »  Enhance tactical and strategic advantages and Spread your risks.
 »  Focus on strategic thinking, process re-engineering and managing trading partner relationships.
 »  Increase customer satisfaction.
 »  Benefit from the provider's expertise in solving problems for a variety of clients with similar       requirements.
 »  Obtain needed project management and implementation consulting expertise, along with       access to best practices and proven methodologies.
 »  Reduce the risk of technological obsolescence and increase efficiency by consolidating and      centralizing functions.
 »  Keep pace and minimize the impact of rapid changes in applications and standards.

Questions to ask your offshore Partner :

Does he has the Right Resources in Place?

OR

Does he has the Infrastructure to gather the required items and resources and deliver the Right solution to you?

Is your Partner Reliable in terms of Timely Delivery?

How does your Partner Define Product Quality?

Has he Delivered Offshore Solutions Earlier?

What is the support Strategy in case of a trouble?

Is your Partner Flexible?

Is your Partner Scalable to your future needs as well?

Does your Partner Adds Value for the Services you Offer

(That is, Does your partner forms part of your Delivery Team effort and gives you new ideas and concepts during the development stage of your Project or Product, that can Add Value when you Complete and Offer the same to your Customers?)

Has he delivered the same Business cycle earlier, may be with a different domain, but stands close to your expectations at what your looking at?

You can take a decision for outsourcing once your satisfied with the above questions and the business deal understanding.

Courtesy: Mahayogya Advisory Board